Auto sales in China, the world's biggest car market and crucial to worldwide manufacturers, grew at their fastest rate in three years in September, data from an industry group showed Wednesday.

Sales reached 2.56 million units last month, up 26.1 percent year-on-year, the China Association of Automobile Manufacturers (CAAM) said.

That was even faster than August's 24.2 percent rise to 2.07 million units.

Auto sales growth has accelerated for the last five months in China as the economy shows signs of stabilising.

"Production and sales have both grown relatively quickly," the group said.

Sales of passenger vehicles had grown fastest, it added, giving the segment a four percent larger share of the market than the same period last year.

The government slashed the purchase tax on passenger cars with small engines last October. The tax break is due to end in a few months time.

An official measure of manufacturing activity maintained the strongest level in nearly two years last month while China's producer prices fell at their slowest rate for more than four years in August, the most recent figures available.

China's biggest carmaker Shanghai Auto Industry Corporation (SAIC) has reported a rise in net profit of more than six percent in the first half of this year on stronger sales.

GM takes stake in China car-sharing startup
Washington (AFP) Oct 12, 2016 –

US automaker General Motors is taking a stake in the Chinese car-sharing startup Yi Wei Xing, expanding the company's global footprint in alternative and mobile-oriented transport.

Yi Wei Xing's smartphone app Feezu works with car-rental companies to let customers hire cars for short periods.

"Yi Wei Xing has solid technologies and innovations that will help us explore more efficient and personalized mobility solutions for consumers in China," Julia Steyn, GM vice president for urban mobility, said in a statement released Tuesday.

The statement did not disclose the amount of GM's equity investment in Yi Wei Xing.

In January GM announced a $500 million investment in the ride-hailing service Lyft as the company joins the race to develop self-driving cars.